AI Startup Perplexity Faces Trademark Infringement Lawsuit: What It Means for the Industry
Perplexity, a venture-backed startup renowned for its AI-powered search products, is facing legal challenges in federal court over allegations of trademark infringement. The lawsuit, filed in the U.S. District Court for the Northern District of California, claims that Perplexity has unlawfully used the trademark of another company, Perplexity Solved Solutions.
Details of the Trademark Infringement Lawsuit
The complaint was lodged on Thursday and highlights that Perplexity Solved Solutions, based in Plano, Texas, has accused Perplexity of infringing on its trademark rights by utilizing the brand name “Perplexity.”
Background on Perplexity Solved Solutions
Founded in 2017, Perplexity Solved Solutions applied for the trademark with the U.S. Patent and Trademark Office (USPTO) in October 2021. The company specializes in HR and workplace collaboration software, which includes:
- A unified dashboard for HR analytics
- A videoconferencing tool named Perplexity Meet
By November 2022, the company had secured its trademark registration and began promoting its products through its website, perplexityonline.com, a domain registered in 2021.
Claims Against Perplexity
According to the Texas firm’s allegations, AI startup Perplexity began infringing on its trademark around August 2022 to market its AI-powered search engine. Notably, Perplexity registered the domain perplexity.ai in July 2022, which the lawsuit also claims constitutes infringement.
The complaint states, “The [Perplexity] website currently located at the infringing domain name prominently features the Perplexity [trademark],” and notes that the products offered by both companies are highly similar.
Perplexity Spaces and Market Impact
Perplexity launched Perplexity Spaces in October, targeting enterprise customers with customizable AI assistants and integrations with various applications. The complaint asserts that Perplexity has saturated the market with its branding, particularly on social media platforms.
Legal Proceedings and Cease and Desist
Perplexity Solved Solutions claims that Perplexity ignored a cease and desist letter and failed to withdraw its pending trademark application, despite attempts to contest it before the USPTO’s trial and appeal board. The attorneys representing Perplexity Solved Solutions argue that this conduct could confuse consumers, as evidenced by social media users mistakenly tagging Perplexity in posts regarding the AI startup’s products.
Legal Implications and Relief Sought
The lawsuit cites potential violations of the Lanham Act, which governs federal trademark law and unfair competition. Among the legal remedies sought, Perplexity Solved Solutions is requesting:
- An injunction preventing Perplexity from using its trademark
- Compensation for damages
- Transfer of ownership for any domains that include Perplexity branding
Ongoing Legal Challenges for Perplexity
This lawsuit adds to the mounting legal troubles for Perplexity, which is currently entangled in a separate suit filed by News Corp’s Dow Jones and the NY Post. The plaintiffs allege that Perplexity has engaged in a form of “content kleptocracy,” raising concerns about the replication of news content. In the past year, other news organizations, including The New York Times, have also issued cease and desist letters against the startup.
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